Tax credit renewal packs now being issued

People can renew their tax credits claim online, at any time and from any device

About 2.1 million tax credits recipients will receive their annual renewal packs this month from HM Revenue and Customs (HMRC).

The packs are being sent out now, up to 27 May, and people have until 31 July to check their details are correct and update HMRC if there has been a change in their circumstances.

Tax credits help working families with targeted financial support, so it is important that people do not miss out on money they are entitled to.

There are two types of renewal packs:

• if it has a red line across the first page and says ‘reply now’, customers will need to confirm their circumstances to renew their tax credits
• if it has a black line across the first page and says ‘check now’, customers will need to check their details are correct. If correct, customers do not need to do anything and their tax credits will be automatically renewed

About 630,000 people will need to confirm their circumstances to renew their tax credits for the 2022 to 2023 tax year.

Tax credits can be renewed for free online via GOV.UK or the HMRC app.

Any change in circumstances that could affect tax credits claims must be reported to HMRC, including changes to:

• living arrangements
• childcare
• working hours
• income (increase or decrease)

Tax credits will be replaced by Universal Credit by the end of 2024. Many people who move from tax credits to Universal Credit could be financially better off and can use an independent benefits calculator to check.

You can choose to apply for UC sooner, but it's important to get independent advice beforehand as you will not be able to go back to tax credits or any other benefits that Universal Credit replaces.